Charlie A.V.Gorayeb <dipc@pacific.net.ph>
2001President, Chamber of Real Estate and Builders' Association (CREBA)
Vice President, ASEAN Association for Planning and Housing
1. The situation of
the real estate market in Year 2000
At the start of the year 2000, the Estrada Administration was optimistic
that the economy could attain its target GNP growth rate of 5.5% and
GDP growth rate of 5.0%. However, adverse events confronted the nation
in the year 2000 such as the persistent oil price increases, the five-month
old hostage crisis in Mindanao, and until lately, the charges of graft
and corruption against the President. The housing spurt that started
in the late 80s up to the middle 90s has not been sustained, and is obviously
now completely stalled.
Part of the blame may
also be attributed to the quagmire to which
our country has been thrown by the economic
aberrations in the Asean region which started
three years ago (However, the case of Malaysia
and other neighboring countries have shown
that a crisis of any magnitude may be overcome
by a proper dose of political will and
an appropriate mix of remedial measures).
The reality is that the
Philippine economy is still in a moribund
state: the shaky political situation, the
peso remains unstable, prices continue
to rise, purchasing power continues to
sink, interest rates are again on the upsurge,
business activity is aimed more at survival
than growth, and with the oil price crisis
gripping the world we brace ourselves for
worse to come. Moreover, the shelter infrastructure
has become dysfunctional. However, a thorough
analysis has shown that this is not due
to any conceptual or structural defect
in the system, but rather spawned by inappropriate
government policies.
2. The trends in the
real estate market in 2001
The country's economic planning agency, the National Economic Development
Authority (NEDA) targets a 5.5% GNP growth and a 5.0% GDP growth in 2001.
Inflation was estimated to hover at 6.5%.
Government remains circumspect
over the performance of the real estate
industry in the year 2001. The rising property
prices and weak purchasing power of consumers
would continue to challenge the Estrada
administration's aggressive efforts on
its housing program. Although the demand
for shelter is increasing, Filipinos would
rather put their hard-earned money on goods
for daily consumption. Another factor that
affect spending on housing is the employers'
lukewarm position on granting wage and
salary adjustments.
We hope that our economy
and the industries would gain headway in
the year 2001. This is by allowing continuing
reforms and introducing sound investment,
financial and macroeconomic policies, resulting
to recovery and full growth thereafter.
The direction of the economy
and the industry in year 2000 can be viewed
as both promising and cautious. While most
industries believe that the flight towards
growth and progress is likely to come,
they would rather be cautious at the same
time, making certain their business interests
and investments would remain safe and viable.
The litmus test to which
the country's economy and industry will
grow shall always be the capability of
government and the private sector to do
their share all in building and sustaining
mutual support for one another.
3. Major market niches,
new innovations or lessons learnt
The real estate sector can look forward to a heightened awareness and
interest in their area, owing to the much anticipated passage of House
Bill 11794, "An Act Creating The Field Of Land Title", which
will focus on increasing activity in the sector as well as assuage concerns
regarding documentation among buyers.
Proposals had been made
for the inclusion of real estate development
as part of the curricula in universities
and colleges, following the path of countries
such as the US, Singapore and Japan that
offer courses on such area.
4. The real estate
appraisal industry in the Philippines
The Philippine real estate appraisal industry is made up of professionals
backed by years of appraisal education and experience and are highly
respected by those seeking professional opinions of value - individual
property owners, investors, government agencies, corporations, the courts,
and others seeking professional appraisal services.
The professional opinion
of the appraiser influences the decisions
of people who own, manage, sell, purchase,
invest in, and lend money on the security
of real estate. And because the appraiser
is trained to be an impartial third party
in the lending process, he serves as a
vital "check in the system," protecting
real estate buyers from overpaying for
property as well as lenders from overlending
to buyers.
In the Philippines, the
services of a professional real estate
appraiser covers: |
